Over a few turbulent days, FTX, the world’s second largest crypto exchange, crashed. On Friday, FTX and Alameda Research, a market maker and trading company filed for Chapter 11 bankruptcy in the United States. Sam Bankman-Fried, the group’s CEO, resigned and apologised on Twitter. More than $125 billion in market capitalization for Bitcoin and other tokens has already been wiped out due to the collapse of FTX. Leading venture capital companies, pension funds, and hedge funds had all invested in FTX. They have now reduced their stakes to nothing.
As the bankruptcy proceedings progress, more businesses and counterparties with FTX exposure are expected to be uncovered. Regulators are now under significantly greater pressure to increase industry oversight.
The Bitcoin price has dropped 6.5% in three days. Prices might fall another 3.8% if the selling pressure continues, retesting the $1,6000 support. Can buyers initiate a strong recovery phase in the market now if the fear has vanished?
Bitcoin(BTC)- The crypto market’s huge crash from the latest 2022 bottom support of $18,400-$18,250 indicates that the continuing declining trend that began last year might be extended. Therefore, Bitcoin’s market value has plunged 75.93% from its all-time high of $68,789 to $16,578.
The coin price is currently sliding by 1.43% and is slowly drifting toward the psychological support level of $16,000. However, the declining volume shows that there is minimal bearish momentum in the current fall. Therefore, prices will probably rebound from the $16,000 support if the cryptocurrency market does not experience any negative occasions. In order to restore the bearish momentum, the currency may have a small recovery barrier to surpass the level of $18,200 resistance.
A breakout over the $18,400 barrier, will indicate that the previous decline was mostly prolonged by panic selling in the cryptocurrency market due to recent impacts. The price might reach $20,800 barriers as a result of regaining the aforementioned level. A bullish divergence in the daily-RSI slope implies that purchasing activity is increasing near $16,000. The downsloping key EMAs indicate a general downward trend in the price of Bitcoin. Furthermore, any retreat might encounter substantial resistance from these EMAs.
For three days in a row, the price of Ethereum declined with decreasing volume, indicating a transitory downtrend. In light of this, if the price of altcoins managed to hold around $1,245 as well as $1,100 in the upcoming week, the positive recovery may proceed to reach the $1,410 level. Will the price rise after this recovery, or will the current decline resume?
Ethereum(ETH)- However, with the publication of better-than-expected CPI statistics on November 10th, the market crypto has seen big inflows. In turn, this week’s bearish breakdown was neutralised by the short pullback, which restored the support that had been breached.
Meanwhile, the Ethereum price has declined 6% in the previous three days due to continuous selling over the weekend, and it now trades at $1,223. The bearish momentum for a further price decline will therefore be accelerated with a daily candle below $1,245. Prices could drop 18.5% as a result of the breakdown in order to psychologically reach the $1,000 threshold.
The volume of dropping prices is declining, though, which suggests there is currently little bearish momentum. The bearish hypothesis will subsequently decrease if buyers can push prices above $1,245, and the price increase will increase by 14% to reach the $1410 resistance level.
The downsloping EMAs (20 and 50) were accumulated around the $1410 level, bolstering the resistance power of this horizontal level. With a large spread, the MACD and signal line entering the bearish zone indicates an increase in underlying bearishness. Furthermore, this collapse should encourage additional sellers to enter the market.
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DISCLAIMER:
Any opinions, news, research, analyses, prices, or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
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